‘Appropriate’ for EU to probe €30m stadium grant

A government minister who helped secure a €30m grant for the Páirc Uí Chaoimh revamp in Cork says he is “not unduly concerned” that the EU is poised to scrutinise the deal for compliance on state-aid rules.

Seán Sherlock, minister of state for development, trade promotion and North South co-operation, said an EU Commission examination was always to be expected given the amount of money involved. But he said the funding package, signed off by Cabinet last month, has been subjected to rigorous assessment by the Department of Public Expenditure and Department of Transport, Tourism and Sport.

“I am not unduly concerned by this intervention by the EU given the size of the grant. It is entirely appropriate that the EU would cast its eye over the grant,” he said. “But the important thing to remember here is not only is this an economic stimulus measure in terms of job creation but it’s also a renovation of a stadium that was built in the 1970s.

“I am reasonably confident that it will pass muster at EU level in terms of state aid rules because the GAA is a voluntary organisation.”

He was speaking after reports in a Sunday newspaper claimed the €70m stadium revamp plans were in “disarray” following the “unexpected intervention” from officials in Europe.

The report said the intervention had “alarmed the GAA” and put the “proposed new stadium under threat”.

The report also claimed the EU intervention could delay the release of the funding by up to 12 months, and jeopardise Ireland’s bid for the 2023 rugby World Cup, given that the revamped stadium is among several GAA stadiums included in the bid.

Last night the Cork County Board said: “The Páirc Uí Chaoimh stadium re-development project meets all the conditions for State funding under the public spending code.

“The board has been made aware of a process that has to be undertaken by Government with the EU with regard to State aid. The board and the Department of Transport, Tourism and Sport are working closely together and the Board anticipates a speedy and successful conclusion to the process.”

A spokesperson for the Department of Sport said the Government is committed to the funding but is required to go through a process to satisfy the EU Commission with regard to potential state aid.

“The department will be seeking, with the co-operation of the Cork County Board, to do so in as short a timeframe as possible,” he said.

Construction is well under way to create a 45,000-seater stadium and a centre of excellence. The project is set to create up to 400 jobs and provide a €22m boost to the local economy during the construction phase.